December '09 Nevada Government—U.S. Congresswoman Shelley Berkley Column

Berkley Votes To Extend Tax Savings For Nevada Families And Small Businesses

Package Preserves Deductions for State Sales Tax, Property Tax, College Tuition, Business Improvements

December 9, 2009 – Washington, D.C. – Congresswoman Shelley Berkley today voted in favor of legislation that extends various tax savings for Nevadans, including deductions for payments of state sales tax and property tax, a credit to help with the cost of college tuition and a credit that reimburses school teachers for out-of-pocket classroom expenses. The House approve the tax-extenders package this afternoon on a vote of 241 to 181.

“This package will protect the ability for qualified Nevadans to continue deducting a portion of the sales tax they pay each year,” said Berkley. “Teachers will also see their deduction for books and other classroom supplies extended and students and parents will be able to continue deducting a portion of expenses related to college tuition.”

The legislation also extends the ability for restaurants and retailers to deduct a portion of expenses for business improvements, and a credit for the Las Vegas Motor Speedway and other racing venues to upgrade their facilities.

“Our legislation will also allow restaurant operators, retailers and others to save on improvements to their businesses. The Las Vegas Motor Speedway, which attracts race fans of all ages, will also see a continuation of the credit for enhancing its facilities in southern Nevada. Without this action, these important tax deductions would disappear, leaving families without the added savings that have come from provisions like the sales tax deduction, tuition credit and the write-off for a percentage of property taxes,” Berkley said.

Employers are also eligible for a deduction to help cover the cost of paying workers in the military reserves who are called to active duty.

“We have taken steps in this bill to make sure that Nevada National Guard members and other Reservists do not suffer a pay cut by providing a tax credit for small businesses that continue to provide a salary to their National Guard and Reserve employees when they are called up to serve,” said Berkley.

As a Member of the House Committee on Ways and Means, Berkley helped to craft the extenders package.

KEY TAX DEDUCTION PROVISIONS

Extension of the deduction of state and local general sales taxes. The bill would extend for one year (through 2010) the election to take an itemized deduction for state and local general sales taxes in lieu of the itemized deduction permitted for state and local income taxes.
Extension of the additional standard deduction for real property taxes. The bill would extend for one year (through 2010) the additional standard deduction for state and local real property taxes.
Extension of the above-the-line deduction for qualified tuition and related expenses. The bill would extend for one year (through 2010) the above-the-line tax deduction for qualified education expenses.
Extension of the business Research and Development credit. The bill would extend for one year (through 2010) the research credit.
Extension of the above-the-line deduction for certain expenses of elementary and secondary school teachers. The bill would extend for one year (through 2010) the $250 above-the-line tax deduction for teachers and other school professionals for expenses paid or incurred for books, supplies (other than non-athletic supplies for courses of instruction in health or physical education), computer equipment (including related software and service), other equipment, and supplementary materials used by the educator in the classroom.
Extension of 15-year straight-line cost recovery for qualified leasehold improvements, restaurant buildings and improvements, and retail improvements. The bill would extend for one year (through 2010) the special 15-year cost recovery period for certain leasehold improvements, restaurant buildings and improvements, and retail improvements.
Extension of 7-year straight-line cost recovery period for motorsports entertainment complexes. The bill would extend for one year (through 2010) the special 7-year cost recovery period for property used for land improvement and support facilities at motorsports entertainment complexes.
Extension of employer wage credit for activated military reservists. The bill would extend for one year (through 2010) the provision that provides eligible small business employers with a credit against the taxpayer’s income tax liability for a taxable year in an amount equal to twenty-percent of the sum of differential wage payments to activated military reservists.

Congresswoman Shelley Berkley Floor Remarks In Support Of House Tax Extenders Package

December 9, 2009 – Washington, D.C. – Congresswoman Shelley Berkley delivered the following remarks from the House floor today. Video of the Congresswoman delivering her statement can be viewed via YouTube at: www.youtube.com/watch?v=ZvnXOUUxhek.

“I rise in support of this legislation to extend expiring tax provisions. It is very important that congress pass this bill this year. Allowing these provisions to expire would amount to a tax increase at a most challenging economic time for our nation's businesses and families.

“Waiting to enact an extension retroactively would add to the already uncertain business climate and make tax planning all the more difficult for companies and individuals that depend on these tax credits.

“The bill extends necessary tax relief to parents and teachers, college students, homeowners, small businesses and millions of other middle income families. This legislation is needed in my state for so many critical things.

“It ensures that Nevada residents who do not pay a state income tax can continue to deduct sales and local state tax from their federal income tax. For Nevada college students, most of whom come from middle income families, deduction of their tuition makes the difference between going to college and not going to college.

“The bill extends a few alternative and renewable energy tax credits -- so critical at this particular time -- such as the tax incentive for natural gas and propane used as a fuel in transportation vehicles. These important provision also help increase clean energy production and consumption.

“But when it comes to the State of Nevada and all politics is local, I would like to tell the other side how important this is to the people I represent. This is not a joke and this is not using these people. This is providing tax relief for millions and millions of people across the country and hundreds of thousands of Nevadans.

“Over 23,000 teachers in my home state will not get a tax benefit for purchasing school supplies out-of-pocket if we don’t pass this.

“Over 32,000 families in my state will not be able to deduct their higher education tuition costs.

“346,000 Nevada families in my state will not be able to deduct the state sales tax that they pay.

“This would be a loss of a $574 million benefit for the state of Nevada. Businesses in my state will not be able to get a credit for their crucial research and development cost.

“I submit to you, Mr. Speaker, this is an important piece of legislation -- timely. We need to pass it now.

Berkley Votes To Provide Estate Tax Certainty For Valley Families & Small Businesses

December 3, 2009 – Washington, D.C. – Congresswoman Shelley Berkley today voted for legislation that provides certainty in estate tax planning for families and small businesses in southern Nevada and nationwide. The Permanent Estate Tax Relief Act maintains the current estate tax exemption of $3.5 million per individual or $7 million for married couples. The bill passed on a vote of 225-200.

“While I cannot say this package is perfect, it provides certainty for estate planning at a time when we need every job created by the family businesses that are at the heart of this legislation,” said Berkley.

In remarks from the House prior to the vote, Berkley emphasized the importance of providing families with certainty when it comes to planning for the estate tax. But the Congresswoman also spoke about her desire to see higher exemption levels and a lower overall estate tax rate than those included in the package approved by the House.

“Philosophically I don't think there should be an estate tax. There are few things in this world that you can do to avoid paying taxes. I think dying should be one of those things. I introduced bipartisan legislation to alleviate the burden the estate tax creates for farms, businesses, and individuals. The legislation would have responsibly phased-up the exemption to $5 million, $10 million for couples, and lowered the rate to 35% over the next 10 years to reduce the burden on those estates that still have an estate tax liability.

“Given the current economic situation, even one job lost to the estate tax is too much. We need to encourage stability in every way possible.

“While the bill before us in my opinion is not a permanent solution, it is far better than a short-term patch. It assures stability in the tax code and allows for estate planning. I believe it will free up resources currently used to plan for the estate tax. I will vote for this bill and I urge my colleagues to join me and do likewise.”

Berkley authored and introduced her own legislation, the bipartisan Estate Tax Relief Act (H.R. 3905). The legislation, which did not receive a vote today, would create a sensible, stable and permanent framework to help families and small businesses effectively plan for the future. Supporters of the Berkley estate tax bill include both business and farm groups.

The Berkley Estate Tax Relief Act would gradually increase the current exemption from $3.5 million to $5 million by 2019, and indexes the exemption for inflation in future years. Over the same time period, the estate tax rate is reduced from 45% to 35%.